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Agenda
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- My background
- Thoughts on what makes BUSINESS successful
- Thoughts on what makes PEOPLE successful
- Thoughts on EAST AFRICA
- Thoughts on EABL
- Q & A
MINDSPEAK FEBRUARY 22, 2014 Agenda My background Thoughts on what - - PowerPoint PPT Presentation
MINDSPEAK FEBRUARY 22, 2014 Agenda My background Thoughts on what - - PowerPoint PPT Presentation
MINDSPEAK FEBRUARY 22, 2014 Agenda My background Thoughts on what makes BUSINESS successful Thoughts on what makes PEOPLE successful Thoughts on EAST AFRICA Thoughts on EABL Q & A 2 My Background British, 48
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SLIDE 3
My Background
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- British, 48 years of age
- Married for 25 years, 3 kids
- Hobbies: Golf and Football
- Employers :- Nestle and Diageo
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Thoughts on Success
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Business Success
- Focus
- Delivery
- Improvement
- Team Work
People Success
- Intellect
- Experience
- Interpersonal
- Attitude
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HARNESSING EAST AFRICA’S GROWTH POTENTIAL
Presentation by Charles Ireland Group Managing Director and Chief Executive Officer, EABL
Kenya | Uganda | Tanzania | S.Sudan |Rwanda | Burundi
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We see some positive trends in terms of underlying demographics...
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Population Growth 2005-2030
SOURCE: PROJECT RAMANI (TNS) JUL 2012; THE STATE OF EAST AFRICA 2012
- 2m new consumers reach
adulthood in East Africa every year
- Generation Y (people born after
1980) are a demographic who are highly connected via technology, more environmentally- and health-conscious and keen to make their own choices
- Females becoming more
financially independent
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The trend of urbanisation favours consumer products...
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Urbanisation 1990 - 2030
- Under 25% of East Africa’s
population lives in urban areas (vs a global average of 50%)
- East Africa has 5 of the Top 20
fastest growing cities in the world
- Urban consumers spend twice as
much on personal consumption as those in rural areas
- Rise of premiumisation and
convenience as trends
0% 10% 20% 30% 40% 50% 60% Beer Spirits % annual growth
On vs Off Trade Value Growth MAT Dec 2012
On-Trade Off-Trade
SOURCE: AC NIELSEN MAT DEC 2012; PROJECT RAMANI JUL 2012
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Likewise, as GDP grows, more consumers will trade out of the large informal sector...
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- Proportion of households with
disposable income rising exponentially
- Informal alcohol is same
volume as total branded beer
- Biggest categories are
changaa (distilled), busaa (opaque maize beer) and mnazi (coconut wine)
- Category dominated by older,
rural men, C2DE
SOURCE: PROJECT RAMANI (TNS) JUL 2012
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The key for these economies will be to allow wealth creation to trickle down to consumers....
- Ensure that the wealth from
energy finds benefits the wider population
- Opening up the EAC to
reduce Non-Tariff Barriers which add to the costs that consumers pay
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We need to improve the sustainability of agriculture…
- c. 25% of GDP
Adding value to: Tea, coffee, cotton, pyrethrum, and horticultural products. Livestock & dairy products Irrigation projects - finding potential in arid and semi arid areas Provision of agricultural extension services.
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We need delivery on planned infrastructure improvements...
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A good example of public-private partnership is EABL’s work
in agriculture....
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EABL’s approach
- 26,000 local partners
across the value chain
- 10,000 metric tonnes of
sorghum sourced in Kenya
- Two new varieties of high-
yielding barley seed launched
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It’s important to invest in Innovation...
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Investment in human capital
We must invest in human capital.....
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Investment in human capital
It’s important to have a positive impact in our communities.....
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EABL has a stretching ambition and is well- positioned to achieve it
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To create the best performing, most trusted and respected consumer products company in Africa
- Market-leading brands in beer and spirits
- History in this region since 1922
- Strategy of investing for future growth
- Strong values
- Global best practice
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This led to total net sales growth of +4%...
F14 H1 P&L vs F13
+4%
- 1%
Net Sales Cost of Sales
31,858
Kshs M
+4%
Profit After Tax
4,161 +9%
Gross Profit
HALF YEAR DEC 2013 VS PRIOR YEAR
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Good growth in Uganda led our business unit performance in F14 H1…
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Kenya Uganda Tanzania EABLi
- 66% of NSV
6%
- 18% of NSV
17%
- 11% of NSV
(11%)
- 5% of NSV
6%
NET SALES GROWTH IN FIRST SIX MONTHS OF F14 VS F13
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Premium and mainstream sectors performed strongly in F14 H1...
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Premium Beer
Tanzania
Mainstream Beer Emerging Beer RTDs
16%
ORGANIC NET SALES GROWTH IN H1 F14 vs. H1 F13.
18%
Premium Spirits
18%
Mainstream Spirits
18%
Emerging Spirits Reserve Spirits
- 24%
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MAKING THIS A REALITY…
EABL keeps walking……
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Q & A Session
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